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Percentage Method Percentage Method The percentage method is used when an employee's wages exceed the Publication 15 tables provided. The process for this method is to take the earnings and subtract the allowances the employee declared on their W-4. The steps used in this method are shown below. Wage Example's sister-in-law Perfect is married and claims 3 allowances. She earns $4,140.75 biweekly. Description Calculation 1. Determine the amount of gross wages. $4,140.75, rounded to the nearest $4,141.00 dollar. 2. Determine the value for the allowances based on the payroll period. $159.60 3. Multiply the allowance value by the employee allowances claimed.